W4. Meyer Corporation reported net income for 2015 of $278, 900. Meyer began the year with 100,000 shares of $1 par value common shares outstanding.
In addition, the company has only potentially dilutive security; $100,000 of 6% convertible bonds, convertible into total of 4,000 common shares.
On October 1, Meyer sold 10,000 shares of common stock for $60 per share. Meyer paid dividends of $2.00 per share to the common shareholders in December. Assuming the tax rate of 30%, calculate Meyer's basic and diluted EPs to cents.